Small Business Value May Be Worth Higher Price
Capitalism is often seen as a system monopolized by, and benefiting, pro-big business corporates. Enormous business success can result from satisfying consumer preferences most efficiently, as Apple has done with consumer electronics in recent years, or by lobbying or colluding with government. Or both. Apple did spend 447% more on the administration’s campaign, locking in a 2-0 victory over Samsung in onshore patent litigations.
Peter Klein said those likely to rise to the top, “in today’s mixed economy, with its peculiar blend of free markets and state controls, are likely to be those who excel in political entrepreneurship, in ‘working the system.’” Murray Rothbard pointed out “the tendency to fail to realize that, while big business would indeed merit praise if they won that bigness on the purely free market, [because] in the contemporary world of total neo-mercantilism and what is essentially a neo-fascist ‘corporate state,’ bigness is a priori highly suspect, because Big Business most likely got that way through an intricate and decisive network of subsidies, privileges, and direct and indirect grants of monopoly protection.”
Prices impact where we shop, but the value we perceive is not necessarily equal to the receipt’s total. While subjective valuation on behalf of seller and buyersContinue Reading →
In a functioning free market, there is nothing inherently wrong with “big business.” But decentralization, or “distributed systems,” also has value: We may be willing to pay a few dollars more at the mom-and-pop shop on the corner if it means our credit card information will be safer.